The $1.5 billion ASSET Super has put its asset consulting contract, currently with Intech, out to tender.

The fund’s contract with Intech will expire on June 30, potentially ending a five-year relationship. John Paul, ASSET Super chief executive officer, said that it was “appropriate and timely” for the fund to review the other asset consulting services available. “In any event, our outsourcing policy requires us to invite tenders for these services,” Paul said. The decision was also motivated by Intech’s gravitation towards implemented consulting, Paul said. “Intech have indicated to us that they want to go down that path, and the fund directors feel they’ve got a fiduciary responsibility to make the final decisions about where money should be allocated. They don’t want to give that to a consultant.” The fund had already invited a number of asset consultants, including Intech, to submit proposals, and a decision on a provider should be reached by the end of May, Paul said. KPMG is running the tender for ASSET Super. Intech said last year it would seek fee increases from its advisory clients as contracts came up for renewal. Its ‘traditional’ consulting business has suffered attrition including NSW State Super and NSW Local Government Super in recent years.

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